Reporting a settlement paid to an employee
January 19, 2021
Q. A former employee received a settlement. I coded as Other Income, so would the employee receive a 1099-MISC and not a 1099-NEC?
(Answered by a 3rd party, independent advisory services firm offering experienced and practical help for tax regulatory compliance for Forms W-9, W-8, W-2, 1099, 1098, 5498, 945, 1042, 1042-S, and state reporting.)
Additional information about the character of the settlement would be needed to determine reporting requirements. For example, an amount identified…
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